Pensions: It's Time to Engage the Workforce

Pensions have not been the most engaging of topics in the past, despite often being cited as the second most valuable benefit – behind salary - a business can provide to its employees. (Employee Benefits, 2019).

The introduction of auto-enrolment in 2012 has meant that more employees than ever are saving for retirement without having to actively engage. It is, however, generally accepted that the current minimum contribution levels will not create enough retirement income for the average person. The fact remains that employers should be working hard to engage employees with their pensions.

Employee Benefits, in their Pensions Research of 2019, concluded that 54% of employers feel that their workforce is not saving enough to live comfortably after retirement. The survey, which was conducted in October 2019, was completed by 135 HR decision makers. Analysis of the results showed:

  • 74% of respondents believed their employees were concerned with how to make the best decisions when assessing their pension benefits
  • 2.59% were concerned by the lack of financial plan their employees had
  • 58% were concerned about their employees running out of money in retirement
  • 54% were concerned about financial security in retirement

 

It is concluded that 68% of employers want to support their staff in making informed decisions about retirement with 60% seeing it as their duty of care. It appears many workplaces have already taken the steps to start this:

  • 43% of HR decision makers reported they run seminars in the month before retirement
  • 53% offer their employees access to financial advice

 

Providing this financial guidance and education will help employees throughout their career, encouraging them to look more holistically at their finances. Although these appear to be steps in the right direction, it should not be left until only a month before they retire. Pensions do not need to be complicated if the right support is available throughout your employees’ career.

The pension report provided by Employee Benefits was set against a backdrop of uncertainty. Although we enter 2020 with slightly more security after the General Election, the ongoing state of turbulent politics is likely to have affected the results.

With the Conservatives in power for another five years and with Brexit scheduled for the end of this month, it may be time for you to support your employees in looking more closely at their long-term financial health.

Our experienced pension consultants have worked with many employers since the introduction of auto-enrolment, delivering targeted presentations, webinars and one-to-one discussions to increase engagement and understanding. As part of our pension review scheme and financial wellbeing benefits, we can boost your workforce’s knowledge and help you support their long-term financial health.

We are happy to discuss our services at any time. Give us a call on 0330 333 9100 or email information@busybeesbenefits.com.